The Detroit News is very concerned that pensioners – long the life blood of a vibrant, dynamic economy – will flee Michigan now that pensions over $20,000 for singles and $40,000 for married couples will be taxed at the same rate as other forms of income in Michigan.

April 16, Detroit News: In fact, said Catherine Frank, executive director of the North Carolina Center for Creative Retirement, a recent AARP survey suggests that in this post-recession economy, retirement relocation decisions are being increasingly made on the basis of health care and financial reasons.

"People's anxiety has increased around whether or not their money will last them in retirement," Frank said. "Things like taxes become tipping points for some people."

Citing an AARP study about tax rates for seniors is a little like citing a Phillip Morris study about the safety of cigarettes. Consider the source.

More importantly, if taxes are tipping points that motivate large populations to relocate then why didn’t seniors flock to Michigan after the state began exempting pensions from the state income tax in 1994?

March 15, MLive: At the time, Gov. John Engler told lawmakers either to start taxing public pensions, including their own, or begin exempting private pensions from tax.

Lawmakers in both parties, of course, chose the latter, allowing joint filers to exclude up to $60,000 in private pension from tax. Adjusted for inflation because the law also does that, the exemption is now up to $90,240.

What’s more, while Michigan may again tax pensions (after allowing for a generous exemption and leaving Social Security untaxed) at a federally-deductible rate of 4.35%, states without an income tax (like Florida) don't exactly offer a free lunch.